The Paris Stock Exchange finished stable (-0.02%) at the end of a wait-and-see session before the publication on Friday of employment data in the United States, important for the direction of the bank’s monetary policy. American center.
The flagship CAC 40 index fell 1.68 points to 8,151.55 points. On Wednesday, it rebounded slightly, gaining 0.29%.
The market does not have much reason to worry, knowing that central bank rate cuts are coming, and at the same time there is a bit of a wait-and-see attitude, comments Alexandre Baradez, head of market analysis at IG France.
The American central bank (Fed), which is maintaining its key rates at their highest level in more than 20 years, has signaled that it expects three cuts in 2024, with markets hoping that the first cut will arrive in June.
During these latest statements, the President of the Fed, Jerome Powell, recalled his dependence on macroeconomic data and today everything revolves around these publications, according to Alexandre Baradez.
Lately we have observed an almost perfect correlation between the reaction of the markets after the publication of indicators and what the Fed looks at to determine the direction of its monetary policy.
Investors are particularly awaiting American employment data which will be published on Friday.
If job creation is fewer than expected, the unemployment rate is higher or wages grow less than expected, this will signal the start of Fed rate cuts, summarizes Alexandre Baradez.
On the bond market, after a phase of tension at the start of the week in the United States and Europe, rates continued to stabilize after their easing the day before. The yield on 10-year American government bonds stood at 4.35%, compared to 4.34% on Wednesday, the interest rate on the 10-year German bond, which is a benchmark on the Old Continent, stood at 2.36 %, compared to 2.39%. In France, the same chance rate was 2.87% compared to 2.90%.
Renault, the race in the lead
The car manufacturer Renault has posted the best growth in the CAC 40 since January 1, with the stock having gained more than 34%.
On Thursday, the share price climbed from 3.16 to 49.60 euros, supported by a note from the HSBC bank which recognizes the company as being the most efficient among automobile equipment manufacturers in the European Union, and estimating that the title can still progress further.
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Saint-Gobain, acquisition welcomes
The French construction materials giant Saint-Gobain announced Wednesday evening the acquisition of the Canadian group Bailey, a company specializing in metal frames for lightweight construction, for an amount of 600 million euros (880 million Canadian dollars).
The share gained 1.59% to 74.26 euros, signing the second best performance of the session after Renault.
Possible layoffs at Alstom in the UK
The French railway group Alstom is considering hundreds of layoffs in the United Kingdom, due to stalled negotiations with the British government on orders and calls for tenders, the Daily Telegraph reported on Thursday.
The group, removed from the CAC 40 since mid-March and now listed on the broader SBF 120 index, closed down 1.02% to 14.06 euros. Since January 1, however, its stock has advanced 15.39%.